Shanghai-based Yitan Network Technology, operator of skill-sharing service app Bixin, recently completed USD 8-digit Series A funding led by IDG Capital Partners at a post-money valuation of USD 100 mln.
Yitan was established in 2014, and the app, originally named Yu Paopao, was launched in 2015. A year after its release, the company received RMB 50 mln in angel funding from Shanghai-based internet cafe chain operator Wangyu Information and Technology.
Bixin is a C2C skill-sharing platform which matches up those offering and those requesting services (typically coaching/instruction services) in the following categories: online/offline gaming, online/offline entertainment (e.g. singing), voice acting, psychological consultations, culture and art lifestyle, and foreign language.
Online and offline gaming is currently the most active category generating the most revenue.
Founder Lin Song said Bixin's core strengths are:
1. Linking online and offline user traffic portals through its partnership with Wangyu. Wangyu users who top up their online accounts via Bixin get a 20-30% discount, and Bixin will also direct users of its offline gaming booking service to Wangyu internet cafes.
2. User retention and mining surplus value. Users' first purchases are usually in gaming categories, but later they will make purchases to try out other categories.
Editor's Note: Users offering services, such as instruction on how to play a particular game or how to sing a particular song, can set their own prices, either at an hourly rate or a per service (e.g. per song sung) rate. Checking the gaming section, Marbridge found that most users listed there were offering their services at RMB 10-50 per hour, with a few as high as RMB 80 per hour.